MISS A FEW HOA PAYMENTS? YOUR HOUSE COULD BE NEXT.
For millions of Americans, the biggest threat to keeping their home isn’t the bank. It’s the homeowners association.
A new report shows HOAs nationwide are becoming dramatically more aggressive about collecting unpaid dues, filing liens and even foreclosing on homes as their own finances come under increasing pressure.
According to real estate analytics firm ATTOM, there were 6,376 HOA-related foreclosure filings during the first quarter of 2026, a nearly 40% increase from two years earlier. The pace is rising even faster than traditional mortgage foreclosures.
“HOAs are being forced into more aggressive collections to avoid their own financial collapse,” Brian Fox, co-founder of real estate technology firm Benutech, told The Wall Street Journal.
The trend reflects a growing financial squeeze on homeowner associations themselves.
Here’s how it generally works:
- If you stop paying HOA or condo dues, the association can place a lien on your property.
- If the debt remains unpaid after the required notices and waiting periods, the association can file a foreclosure lawsuit.
- If the court grants the foreclosure, your property can be sold to satisfy the debt.
A few important points surprise many homeowners:
- The amount owed doesn’t have to be huge. A relatively small unpaid balance can eventually grow into thousands of dollars once late fees, interest, attorney’s fees, and court costs are added.
- Your mortgage being current doesn’t protect you. You can lose a home to an HOA foreclosure even if you’ve never missed a mortgage payment.
- The mortgage lender usually has priority. If an HOA forecloses, the first mortgage often remains attached to the property. Investors who buy at HOA foreclosure sales know they may still have to deal with the mortgage.
For years, many HOAs kept monthly dues artificially low while delaying maintenance and underfunding reserve accounts. Then came soaring insurance premiums, rising labor costs, more expensive building materials and, in some states, stricter structural safety requirements following the 2021 Surfside condominium collapse in Florida.
Now many associations say they simply can’t afford to carry delinquent homeowners.
Instead of extending payment plans or informal grace periods, boards are increasingly turning accounts over to attorneys shortly after payments are missed, where legal fees can quickly snowball into thousands of dollars.
The numbers are staggering.
Benutech Data Insights reports that homeowner associations filed 284,933 liens against property owners during 2025—an 8.6% increase from the previous year and the equivalent of one lien every 90 seconds. In many states, those liens can ultimately lead to foreclosure, even if the homeowner is current on the mortgage.
Insurance has become one of the biggest culprits.
According to the Foundation for Community Association Research, more than 90% of associations have experienced property insurance increases in recent years, with some communities seeing premiums more than double. Those costs are often passed directly to homeowners through higher dues or special assessments.
Reserve funds are also running dangerously low.
A 2026 industry report analyzing more than 100,000 reserve studies found that roughly three-quarters of association-governed communities are significantly underfunded, leaving many boards with little cushion for major repairs or unexpected expenses.
The financial pressure is showing up in neighborhoods across the country.
Outside Charlotte, North Carolina, residents of one community recently saw monthly HOA dues jump from $350 to $1,250, along with a $10,000 special assessment to replenish reserves and pay rising expenses.
Industry groups say foreclosures remain a last resort and note that many associations still offer payment plans or hardship accommodations before pursuing legal action.
But consumer advocates warn that once lawyers become involved, collection fees and legal costs can rapidly turn relatively small unpaid assessments into debts large enough to threaten homeownership.
DBS WIRE SOURCES:
- FOX Business: Cash-strapped HOAs ramp up foreclosures against delinquent homeowners: report
- The Wall Street Journal: Homeowners Associations Are Foreclosing on More Residents
- New York Post: Aggressive HOAs are running out of money and foreclosing on more residents than ever before
- Benutech Data Insights: Homeowner Association Liens Jump Nearly 9%
- Association Reserves: 2026 Industry Insights Report: Lessons from 100,000 Reserve Studies Across All 50 States
